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Thursday, December 1, 2022

What Are the Advantages of a Credit Card?

A credit card is a favourable financial creation that can be used for daily purchases such as groceries, gas, and other goods and services. Because the funds for these items are immediately available, it can also be a great source for buying high priced items such as TVs, jewellery, and travel packages. 

Benefits offered by credit card companies:

 Credit cards differ from debit cards in that a debit card is linked directly to a bank account, and the amount spent is directly debited from your account. No interest charges are levied on the debit card transactions as there is no money due after the amount is debited. 

A credit card allows for building credit, whereas debit cards do not. Credit cards have a credit limit based on several factors, depending on the income, person’s credit history, and the amount of credit they are availing.

 Buying Strategy:

Strategically used credit cards are a precious outfit for travelling, earning rewards, handling unplanned expenses, and building a credit line. A rewards credit card rewards the cardholder for procuring essentials. Credit card rewards vary from time to time and issuer to issuer. Some cards reward the holders in the form of cashback or form of travel miles. 

Frequent card users earn rewards that they can redeem for exchanging items they were likely to purchase or enjoy an occasional indulgence. 

For frequent travellers:

When travelling, credit cards are quite beneficial as you do not need extra cash for fear of safety. Almost all hotels and major car rental companies accept credit cards to book a room or reserve a vehicle. Credit cards increase your purchase power by providing you with the required funds at the time of your need.

Fraud Prevention:

To prevent any fraud that may occur in the event of a theft of your card. The credit cards alert you of any transaction taking place on your card through messages on your mobile phone as a safety measure, and the transactions can be prevented.

Penal interest:

Many credit card companies allow the holder to pay back the spending within a reasonable time. The penal interest is levied for payments delayed beyond the stipulated credit period. To maintain your credit line and CIBIL rating, it is advisable to use the credit card conscientiously and not make impulsive purchases. 

Cash Backs:

Eligible cardmembers earn cashback for purchases made by using the credit card. Different cards reward their cardholders in different ways, either as cashback on daily purchases or as points that can be redeemed at restaurants or on air tickets. Six key card features Here are six key card features to look for while choosing a credit card that could help you make a financial decision. 

Fees: 

Credit cards charge several fees, such as annual fees, balance transfer fees and late payment penalty fees. These fees are not applicable for a diligent credit card holder; however, annual fees are inevitable. 

Rewards:

 Credit card rewards range from cashback, hotel points, retail perks and airline miles. Every credit card has unique reward earning patterns and redemption methods. The ruse is to find a card with rewards that match your spending profile. For example, an airline miles card that rewards spending on airfare may be the best for a frequent flier, who can redeem his earned points for a flight ticket or seat up-gradation. 

Promotions: 

Credit card issuers promote their cards to new applicants through welcome bonuses with attractive rewards from time to time. These offers could be quite tempting; make sure you read the small print and understand the offer before taking advantage. Many promotions are for a fixed duration of time or are awarded only if you spend a certain amount of money within the specified time.

Easy loan approvals:

A credit card lets you borrow loans from banks. Upon your request, your bank will transfer the loan amount against your available credit limit to your bank account once your loan gets approved. 

Useful record:

A credit card provides a useful record of your spending through your monthly statement. Some credit cards do send year-end summaries, though that can be a great resource when you’re calculating your taxes.

Let us now discuss the credit card features of the top 4 free Credit Cards 

  • Bajaj Finserv RBL Bank SuperCard

The Bajaj Finserv RBL Bank SuperCard is a unique offering with a wide range of benefits such as welcome reward points, milestone bonuses, accelerated rewards, discounts, cashback and much more.

  • Kotak Bank Aqua Gold Credit Card

Kotak Mahindra Bank, India’s leading private sector bank, offers Kotak Bank Aqua Gold Credit Card, an exclusive card designed to help you save money in the form of interest-free cash withdrawals, fuel surcharge waivers, and the free credit card implies more savings. In addition, the credit card features benefits such as free PVR tickets and a cashback of Rs.750.

  • Bajaj FinServ RBL Bank World Plus SuperCard

The Bajaj FinServ RBL Bank World Plus SuperCard is a card for the tip-top, giving admittance to unparalleled yearly investment funds and rewards. This credit card features benefits like – free air terminal parlor access, 10x prizes on global spends, dining offers, fuel overcharge waivers, and yearly investment funds of more than Rs. 55,000 prizes on yearly achievement spends, free film tickets, and that’s just the beginning. With this elite credit card, you can avail a fast 90-day crisis advance, make cash withdrawals at ATMs, and convert your buys into simple EMIs.

  • Amazon Pay ICICI Bank Credit Card

 In collaboration with ICICI Bank, Amazon has launched the Amazon Pay ICICI Credit Card. This is a lifetime free credit card with additional benefits for Amazon Prime Customers. You get to earn a cashback for all you’re spending in the form of Amazon Pay Balance. Such as 5% cashback for Amazon Prime customers when shopping on Amazon. 15% discount on selected partner restaurants in India. One percent fuel surcharge waiver. The card comes with no joining and annual fees for all.

Conclusion:

 A free credit card has altered the way people shop by serving them with easy credit on a swipe of the card. Credit cards are best enjoyed by the proficient, which are aware of their ability to pay the monthly bill before the due date in full. If you already know how to use a credit card responsibly, shift your purchases to your credit card.

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